Question
90. You just deposited $5,000 in a bank account that pays a 4.0% nominal interest rate, compounded quarterly. If you also add another $5,000 to
90. You just deposited $5,000 in a bank account that pays a 4.0% nominal interest rate, compounded quarterly. If you also add another $5,000 to the account one year (4 quarters) from now and another $7,500 to the account two years (8 quarters) from now, how much will be in the account three years (12 quarters) from now?
Group of answer choices
$18,852.94
$23,189.11
$17,910.29
$18,475.88
$20,361.17
88. Your subscription to Investing Wisely Weekly is about to expire. You plan to subscribe to the magazine for the rest of your life, and you can renew it by paying $85 annually, beginning immediately, or you can get a lifetime subscription for $810, also payable immediately. Assuming that you can earn 6.0% on your funds and that the annual renewal rate will remain constant, how many years must you live to make the lifetime subscription the better buy?
Group of answer choices
16 years
12 years
14 years
11 years
13 years
87. Your child's orthodontist offers you two alternative payment plans. The first plan requires a $3,000 immediate up-front payment. The second plan requires you to make monthly payments of $137.41, payable at the end of each month for 3 years. What nominal annual interest rate is built into the monthly payment plan?
Group of answer choices
43.56%
37.80%
36.00%
30.60%
28.08%
86. You are considering investing in a bank account that pays a nominal annual rate of 7%, compounded monthly. If you invest $3,000 at the end of each month, how many months will it take for your account to grow to $165,000?
Group of answer choices
38 months
49 months
40 months
48 months
52 months
85. You are considering an investment in a Third World bank account that pays a nominal annual rate of 18%, compounded monthly. If you invest $5,000 at the beginning of each month, how many months would it take for your account to grow to $470,000? Round fractional months up.
Group of answer choices
60
59
68
53
57
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